MPS Board Backs Dual Share Swap Offers for Banco BPM and Banca Generali to Fend Off Intesa Sanpaolo

Published on 20/08/2026 – 19:10 GMT+2

The board of directors of Banca Monte dei Paschi di Siena (Mps) has approved a strategic plan proposed by CEO Luigi Lovaglio to launch two separate public exchange offers targeting Banco BPM and Banca Generali. This move aims to establish an industrial alternative to the takeover bid initiated by Intesa Sanpaolo for the Siena-based bank.

The decision was made on Thursday following an extraordinary session of the Mps board. It comes in response to growing pressure from Intesa Sanpaolo, whose public purchase and exchange offer – valued at approximately €30.5 billion – seeks to acquire Mps and gain control over the historic lender.

The counter-proposal submitted by CEO Luigi Lovaglio involves two distinct public exchange offers composed solely of Mps shares: one directed toward Banco BPM and another toward Banca Generali. After nearly seven hours of deliberation, the board endorsed the plan with nine votes in favor and four abstentions.

The primary objective of this dual-swap strategy is to enhance Mps’s standing within the Italian banking landscape by forming a larger, more cohesive banking group. Additionally, the transaction could reshape Banco BPM’s shareholder dynamics. Notably, Crédit Agricole holds a substantial stake in Banco BPM, and since the Mps offer lacks explicit backing from Banco BPM’s management, it unfolds amid existing tensions among key stakeholders.

Banca Generali, similarly influenced by Assicurazioni Generali – often referred to as the “Lion of Trieste” – is involved through a separate but related transaction. While Mps has moved forward with both proposals, neither target institution has formally endorsed them at this stage.

Crédit Agricole declined to comment on Mps’s approach regarding Banco BPM. Likewise, Banca Generali issued no official statement following the board’s approval of the second exchange offer.

Salvini Defends Mps Amid Banking Sector Upheaval

Matteo Salvini, Italy’s deputy prime minister and leader of the League party, voiced strong support for protecting Monte dei Paschi di Siena during a press briefing on Thursday. He emphasized the importance of preserving the “history, autonomy and staff” of legacy banks like Mps, describing them as symbols of Italy’s rich industrial heritage.

“We are carefully monitoring developments in the restructuring of the Italian banking system,” Salvini stated. “Our government played a pivotal role in rescuing and revitalizing Mps—a proud moment for our administration.”

He further claimed responsibility for the League’s involvement in the bank’s turnaround. “When we took office, one of our first priorities was saving Monte dei Paschi from collapse. What was once tarnished by years of mismanagement under left-wing rule now stands poised for renewed prominence in the national economy. That’s something the League can take great pride in,” he said.

Criticism Mounts Over Government Interference in Takeovers

Ivan Scalfarotto, a senator from Italia Viva, criticized the current administration’s handling of ongoing banking maneuvers earlier on Thursday morning. He described the government’s actions as “absurd and inexplicable.”

Scalfarotto accused Prime Minister Giorgia Meloni’s team of meddling not only in Intesa Sanpaolo’s bid for Mps but also in other high-profile transactions such as the UniCredit-Banco BPM merger discussions. His criticism echoes broader concerns about political influence in sensitive corporate affairs.

“It’s become ludicrous—we’re watching the government launch direct attacks against the CEOs of some of Italy’s biggest banks,” Scalfarotto remarked. “Markets should decide winners based on performance—not politics. Let the numbers speak for themselves.”

He concluded with a pointed warning: “This isn’t about choosing sides between Orcel, Messina, Lovaglio or Donner—it’s about ensuring the state stays clear of private sector battles. Once again, Meloni’s allies are inserting themselves into matters they ought to leave untouched.”

Market Reacts Cautiously to News

As investors digest news of Mps’s latest move, Milan’s stock exchange responded positively overall. The FTSE MIB index rose modestly by 0.35%, buoyed by gains across several major banking names.

Shares of Banca Monte dei Paschi di Siena climbed 1.05%, reflecting renewed investor confidence in the bank’s defensive strategy. Banco BPM ticked up slightly, adding 0.21%, while Banca Generali saw the strongest rally, surging 2.08%.

Intesa Sanpaolo rose 0.90%, suggesting continued market backing for its acquisition efforts despite fresh developments. Meanwhile, Generali advanced 0.61%. However, Unipol stood out as an outlier, slipping 1.97% after announcing its alignment with Intesa Sanpaolo in the context of the pending Mps deal.

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